Karnataka High Court Quashes Criminal Proceedings in BESCOM Tender Case

Allegations of procedural violations deemed non-criminal under Bharatiya Nyaya Sanhita, 2023, and Prevention of Corruption Act, 1988.

In a significant ruling, the Karnataka High Court has quashed the criminal proceedings against Sri Mahantesh Bilagi and other accused in connection with alleged procedural violations in the awarding of a tender by the Bengaluru Electricity Supply Company Limited (BESCOM). The court found that the allegations, if true, may lead to civil actions or public interest litigation but do not constitute criminality under the Bharatiya Nyaya Sanhita, 2023, or the Prevention of Corruption Act, 1988.

The case revolved around accusations of favoritism and conspiracy in awarding a tender for smart meters, alleged to have been orchestrated to benefit M/s. Rajashree Electricals Private Limited. The petitioners, including a former Energy Minister of Karnataka, challenged the trial court's decision to order a report from the Lokayuktha Police without prima facie evidence of criminality.

Justice M.I. Arun, presiding over the case, emphasized that the allegations of procedural violations and the awarding of contracts could potentially be addressed through civil proceedings or public interest litigation but did not inherently establish criminal misconduct. The court noted that the trial court had erred in calling for a Lokayuktha report without assessing the prima facie criminality of the allegations.

The High Court further clarified that the mention of wrong statutory provisions by the trial court was a typographical error and not detrimental to the case's outcome. The judgment highlighted that no evidence of dishonest or fraudulent intention was found in the tender process, and the allegations did not fulfill the criteria for offenses under the specified sections of the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act.

In its order, the High Court quashed the criminal proceedings initiated in PCR No. 24/2025, stating that the allegations and materials provided did not constitute criminal offenses. The decision has brought relief to the accused, with proceedings against one of the accused, who had passed away during the trial, being abated.

The ruling underscores the judiciary's role in distinguishing between civil and criminal liability in cases involving procedural discrepancies in public procurement.

Bottom Line:

The court held that allegations of procedural violations in the tender process and awarding of contracts, if proven, may lead to civil causes of action or public interest litigation but do not necessarily constitute criminality under the Bharatiya Nyaya Sanhita, 2023, or the Prevention of Corruption Act, 1988.

Statutory provision(s):  

• - Bharatiya Nyaya Sanhita, 2023 - Sections 314, 316  
• - Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 175(3), 175(4)  
• - Prevention of Corruption Act, 1988 - Sections 13(1)(a), 13(1)(b)  
• - Karnataka Transparency in Public Procurements Act, 1999

Sri Mahantesh Bilagi v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 2816658